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ABSTRACT Electronic business is the conduct of business process on the internet. These electronic business process include buying and selling products, supplies and services; serving customers: processing payments; managing production control; collaborating with business partners; sharing information; running automated employee services; recruiting and more.Many merchants do not understand the amount of time and effect required to setup and maintain on e-commerce website. Effective e-mail marketing site optimization, content generation template, creation and shopping cart installation all require a significant investment of professional resources. E-business can comprise a range of function and services, ranging from the development of intranet and extranet to e-service, the provisions of services and task over the internet by application service provides. Hence the study is significant and it provides an insight in to the problems faced in e-business.